What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Bank of America (BAC) revenue becomes net income?

For TTM through Q1 2026, Bank of America turned $174.85B of revenue into $31.70B of net income — a net margin of 18.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Bank of America (BAC) gross, operating, and net margins?

For TTM through Q1 2026, Bank of America reported a gross margin of 63.2%, an operating margin of 22.9%, and a net margin of 18.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Bank of America (BAC) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Bank of America (BAC) Income Statement Waterfall

Revenue

$174.85B

Gross Margin

+63.2%

Operating Margin

+22.9%

Net Margin

+18.1%

Income statement waterfall for Bank of America (BAC) — TTM through Q1 2026

Net income: $31.70B

Margin breakdown for Bank of America (BAC) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$174.85B	$174.85B
Cost of Revenue	−$64.38B	$110.47B
Gross Profit	$110.47B	$110.47B
Operating Expenses	−$70.49B	$39.98B
Operating Income	$39.98B	$39.98B
Pre-tax Income	$39.98B	$39.98B
Income Tax	−$8.29B	$31.70B
Net Income	$31.70B	$31.70B

Revenue$174.85B
Cost of Revenue−$64.38B
Gross Profit$110.47B
Operating Expenses−$70.49B
Operating Income$39.98B
Pre-tax Income$39.98B
Income Tax−$8.29B
Net Income$31.70B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Bank of America (BAC) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Income statement waterfall for Bank of America (BAC) — TTM through Q1 2026

Margin breakdown for Bank of America (BAC) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Bank of America (BAC) revenue becomes net income?

+What are Bank of America (BAC) gross, operating, and net margins?

+Why does Bank of America (BAC) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

Bank of America (BAC) Key Financials

Explore more